MSE guide: First Homes scheme - how it works and who can apply

MSE_Kit

This is the discussion thread for the First Homes scheme guide.

The guide discusses topics such as:

- What is the First Homes scheme
- Who can apply for the scheme
- Do I need a mortgage
- How to apply for First Homes
- How does First Homes compare to other schemes

If you haven't already, join the forum to reply.

silvercar

I’d be worried about resale. When the time comes you have to sell to someone else eligible for First Homes and give them the same discount. This means that you don’t get to keep all the growth in value, that could make the jump to your next home difficult. 

MSE_Kit

silvercar said:

I’d be worried about resale. When the time comes you have to sell to someone else eligible for First Homes and give them the same discount. This means that you don’t get to keep all the growth in value, that could make the jump to your next home difficult. 

A very good point you make, silvercar, and similar to shared ownership in the sense that there are certain restrictions when it comes to selling.

I'll look at highlighting this point around selling more explicitly in the First Homes guide, as I arguably don't draw enough attention to this restriction currently.

squares

Has anyone signed up for one of these? My son currently interested. But I’m now worried. Buying at 215k, and from what I read the most you can resell is 250k
So hypothetically it’s worth just over 300k now to get the 70% discount to 215k… but actually for a mid terrace two bed it’s way over the odds! And to sell at 250k to make some profit, it has to sell at 350 is… a lot for that property!! Is it worth it! Yes it’s a nice home, better than renting. But no chance of it helping you move to something better anytime really, any thoughts? Potential most equity is 35k..

FTBboy123

Hi, I am looking/thinking of utilising the First home scheme after it got brought to my attention recently. I am a FTB needless to say. I have a few questions that I cannot seem to get clarity on so thought maybe someone here may be able to answer:
-Can you only apply for properties in the area you currently live in?- If so, what is defined by 'area'?
-Is it right that there is no 'central place' that advertises homes available under this scheme?? So its a case of contacting the developer/estate agent directly and asking?
-I see the downside when it comes to selling. So if you can only sell to someone who is also buying via the scheme, how does that work because the property will not be a new build by then, if that makes sense? If that's the case, how do I, as a buyer, find a home currently purchased under First home, that is selling, to allow me to buy from a current owner.

ThorOdinson

The £250k limit makes it useless for many people. You can't buy a new build anything around here for 250k.